Take-Two Interactive takes over WWE video game license from THQ

Bloomberg is reporting that Take-Two Interactive has agreed to take over the development and production of future WWE games from the dissolved THQ.

Court documents filed yesterday revealed that the agreement between THQ and Take-Two will save the company millions in bankruptcy claims.

Yuke’s, which develops the WWE video games for THQ, will continue working with WWE and Take-Two in a new agreement which will also see the makers of the “Grand Theft Auto” franchise take over the THQ employees that worked on the WWE video games.

As part of the deal, WWE has agreed to waive its pre-bankruptcy claim of $45 million and royalty advances of $7.5 million. THQ will now pay WWE $650,000 in royalty payments for the games sold while under bankruptcy protection.

Yuke’s 14% equity have been returned by THQ – valued at $4.5 million – in exchange of pre-bankruptcy claims waiver. The video game developers will also get $250,000 in royalties.